Corporate Discounts
June 22nd, 2006 at 11:45am Lorie Obernauer
It is not unusual for corporations to expect special services such as volume discounts. Often, corporations get regular discounts from suppliers who hope to gain and maintain the high volume of business that a large company can do.
Here’s an idea from Floral Finance, June, 2006. Instead of offering your corporate clients discounts on purchases, base their discount on prompt payment of their account.
If you give discounts on volume purchases, you need to keep track of those purchases. Furthermore, you may need to be patient if the corporation doesn’t send a check within your payment terms.
Instead, if for example, you offer a discount for payment within 10 days, the corporation has an incentive to pay your bill on time. With this approach, everyone wins!
Entry Filed under: Business Tips
3 Comments Add your own
1. Shirley George Frazier | June 23rd, 2006 at 5:43 pm
This discounting idea is a very good.
It can be difficult deciding whether or not to give a discount, especially when everyone tries to get their total reduced, whether they deserve a discount or not.
Sometimes you can offer one, and other times you cannot. But no one should feel pressured to do so.
2. Lorie Obernauer | June 26th, 2006 at 10:17 am
As you said Shirley, everyone seems to be looking for a discount these days. In our wholesale floral supply business, we have also tried to offer discounts to established account based on increases in their purchases. While this requires more recordkeeping, it is a good way to encourage customers to do more business with you.
3. Flora Morris Brown | June 28th, 2006 at 1:40 pm
I like this idea of a discount based on a timely payment especially with corporations. Small businesses are not always able to buy in the volume needed to get the discounts offered by manufacturers and distributors that would warrant offering a discount.
But since some corporations often drag payments out from 30 to 45 days, getting your payments faster would be worth taking a little less profit.
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